Northrop CEO: To beat China, US must step up investments in advanced computing

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  May 19, 2020 | International, Aerospace, C4ISR

  Intelsat declares bankruptcy

  Nathan Strout and Valerie Insinna Satellite communications provider Intelsat declared bankruptcy May 13, although its subsidiary which provides services to the Department of Defense is not part of the Chapter 11 proceedings. CEO Stephen Spengler spun the action as a positive move, claiming it gave the company more financial flexibility for the Federal Communication Commission's clearing of C-Band spectrum to make way for 5G uses. Major satellite communications companies, including Intelsat, saw their stocks take a massive hit last fall when FCC Chairman Ajit Pai announced plans for a public auctioning of C-Band spectrum, which C-Band holders like Intelsat had hoped to sell off directly. The company says it will need to spend more than $1 billion to meet the FCC's deadlines for clearing out C-Band spectrum, which it needs to do in order to be eligible for $4.87 billion in accelerated relocation payments. Wiping the company's significant legacy debt off the books will help it accomplish those actions, said Spengler. “We intend to move forward with the accelerated clearing of C-band spectrum in the United States and to achieve a comprehensive solution that would result in a stronger balance sheet,” said Spengler in a statement. “This will position us to invest and pursue our strategic growth objectives, build on our strengths, and serve the mission-critical needs of our customers with additional resources and wind in our sails.” Subject to court approval, the company said in a statement it had already secured $1 billion in new financing in debtor-in-position funds, giving it the liquidity to continue current operations and finance C-Band clearing costs spurred by the Federal Communications Commission. The company claims that day-to-day operations will not be impacted by the restructuring process—it will continue to launch new satellites and invest in its network with no changes planned. The Chapter 11 petitions for Intelsat and some of its subsidiaries were filed with the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division. However, Intelsat General, which provides satellite communications to the U.S. military and allied military customers, is not part of the bankruptcy proceedings. “The immediate concern (for DoD) is continuity of operations and it sounds like that is not going to be a big issue,” said Todd Harrison, director of the Aerospace Security Project at CSIS. “The longer term concern for DoD is how does Intelsat eventually emerge from bankruptcy, and is there any kind of transfer in ownership or an increase in ownership stake that would be concerning from a national security perspective.” Specifically, investment from Chinese companies could raise alarms for the military and the Committee on Foreign Investment in the United States. “I think that's something that DoD will be watching, that Treasury will be watching,” he said. “It will be a positive side from DoD's perspective if wherever the capital is coming from is from a U.S. source.” When asked about potential Chinese investment in a bankrupt Intelsat May 14, U.S. Air Force Assistant Secretary for Acquisition, Technology and Logistics Will Roper acknowledged he had concerns. “It's a topic that's harder for me to talk about, but we are mindful of adversarial tactics in this period. Every crisis is an opportunity, and with companies coming under duress it is an opportunity for predatorial tactics targeting IP that countries would not have access to otherwise," he told reporters. Furthermore, Roper noted that the decision to financially support a company like Intelsat to prevent foreign investment requires a different calculus than a traditional stimulus. “The way to engage if we risk losing IP to a nation for whom it's not in our interest to have it, it's a very different strategy (than whether we) should engage to prop up a company through stimulus," he said. "When the former appears to happen, then we need to pivot into a different gear than we would be in the latter. We simply cannot do stimulus for every company that is in duress right now.” Intelsat isn't the only major satellite company to declare bankruptcy. OneWeb—who have been building a proliferated low earth orbit constellation to provide broadband—declared bankruptcy in March. DoD had been exploring utilizing OneWeb for communications in the Arctic among other things, and Lt. Gen. David Thompson, vice commander of Headquarters Space Force, noted earlier this week that the department's new Space Acquisition Council was looking into helping OneWeb and other financially vulnerable space companies impacted by COVID-19. Intelsat noted in a statement that several of its end markets had been impacted by COVID-19. Roper said he was concerned with how COVID-19 was disproportionately affecting space and aviation companies, which rely more heavily on commercial revenue than other parts of the defense industrial base. “That's why we've taken such aggressive means to accelerate contract awards," said Roper. “We're worried about space, as well, especially microelectronics. All of the Space Acquisition Council shares that concern. And as we see the Chapter 11s being filed—we're tracking them—but our concern as an acquisition enterprise has got to be industrial base health and not picking winners or losers with specific companies. It's ensuring that we are engaging to have a healthy industrial base on the other side." Roper added that he had approved the acceleration of a major satellite award that should be announced this week as part of the department's efforts to increase the flow of funding to defense companies during COVID-19. https://www.c4isrnet.com/battlefield-tech/space/2020/05/14/intelsat-declares-bankruptcy/

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  February 26, 2020 | International, Aerospace

  Insufficient missile defense funding would leave Americans vulnerable

  The U.S. Missile Defense Agency submitted its report on unfunded priorities to Congress last week, which includes a number of priorities worth more than $1.1 billion. The list demonstrates the tangible consequences of a flat Pentagon budget request and provides a road map for lawmakers to ensure that the U.S. homeland and America's forward-deployed troops have sufficient missile defense protection. The Trump administration requested $705.4 billion for the Department of Defense for fiscal 2021, a level that fails to keep pace with inflation. Accordingly, the DoD is only requesting $9.2 billion for FY21 for the MDA — more than an 11 percent reduction from the FY20 enacted amount of $10.4 billion. The National Defense Authorization Act requires the MDA to submit a list to Congress of items not included in the administration's budget request but that are “necessary to fulfill a requirement associated with an operational or contingency plan of a combatant command or other validated requirement.” The list includes programs that combatant commanders genuinely need and would have included if additional resources were available. The MDA's top unfunded priority for FY21 is $231 million for 10 additional Standard Missile-3 Block IIA missiles. The SM-3 IIA missile is designed to intercept medium- and intermediate-range missiles. This additional purchase would bring the total number to 24 missiles a year, which MDA calls the “maximum sustainable production rate per year without further investment.” In addition to the SM-3 IIA's vital existing capabilities against medium- and intermediate-range missiles, the DoD believes that the missile could potentially be adapted to intercept intercontinental ballistic missiles. In response to a mandate in the NDAA, the MDA plans to conduct a flight test this spring, known as FTM-44, to determine whether an SM-3 IIA could intercept an ICBM. If successful, the SM-3 IIA could then provide an additional and complementary layer of protection for the U.S. homeland against a limited ICBM attack from an adversary such as North Korea. Consequently, keeping the SM-3 IIA production line at full speed would enable the U.S. to meet combatant commander requirements for medium- and intermediate-range ballistic missile defense. And if the test this spring is successful, optimized ongoing production would also allow the DoD to more quickly field SM-3 IIAs for homeland defense against ICBMs. The MDA's second- and third-highest unfunded priorities relate to the Terminal High Altitude Area Defense system. These include $319 million to procure an eighth THAAD battery for the United States and $30 million to procure trucks required to support THAAD systems. The THAAD is a rapidly deployable land-based missile defense system designed to intercept incoming ballistic missiles during their terminal (or final) phase of flight. Since the program was initiated, the MDA reports, THAAD has completed 15 successful intercepts in 15 attempts. THAAD uses hit-to-kill technology to destroy an incoming warhead. It is effective against short-, medium- and some intermediate-range ballistic missile threats. The DoD can transport the THAAD system by air, land or sea. Iran's January ballistic missile attack on U.S. service members at two bases in Iraq highlighted the lack of sufficient U.S. ballistic missile defense capacity. With no U.S. ballistic missile interceptors in range, U.S. forces could only watch and wait for impact. Had a THAAD system been deployed in the region, the U.S. could have intercepted the Iranian ballistic missiles and better protected U.S. troops. Acquiring an eighth THAAD battery makes not only operational sense, but also financial sense. Saudi Arabia is purchasing a large quantity of THAAD systems. A U.S. and Saudi “synchronized” purchase would enable the U.S. to benefit from the associated economies of scale. The fourth priority on MDA's unfunded list is $39 million to “develop technology and advanced command and control to integrate networked sensors to detect and track advanced cruise missile threats.” As Gen. Terrence O'Shaughnessy, the commander of Northern Command, highlighted in congressional testimony on Feb. 13, the U.S. homeland remains incredibly vulnerable to a cruise missile attack. He testified that “advanced cruise missiles now carried by Russian aircraft and submarines present a growing challenge to our current sensor networks and have the range and accuracy to strike military and civilian targets throughout the United States and Canada.” O'Shaughnessy argued that investments in cruise missile defense capabilities “are necessary to defend our vital facilities and infrastructure, preserve our national ability to project power abroad, and help to safeguard our citizens and vital institutions.” That is exactly what MDA's unfunded priority would do, and the burden of proof should be on those who argue that it should not be funded. A fundamental responsibility of the federal government is to protect the American people. The MDA's report on unfunded priorities to Congress demonstrates that the agency requires additional funding from Congress to fulfill this important responsibility. Bradley Bowman is the senior director for the Center on Military and Political Power with the Foundation for Defense of Democracies. https://www.defensenews.com/opinion/commentary/2020/02/25/insufficient-missile-defense-funding-would-leave-americans-vulnerable/

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  July 3, 2024 | International, Land

  The Emerging Role of AI in Open-Source Intelligence

  AI and ML revolutionize open-source intelligence, enhancing real-time analysis, multilingual processing, and predictive analytics for better decision-